March 6th QSR Roundup: Wendy's Ambitious Plan, Papa John's Strategic Revamp, and Shake Shack Lawsuit in California

Interviewy Team

Mar 6, 2025 — 6 min read

QSR news for Mar 6th, 2025. We reviewed 21 QSR publications, 6 subreddits, and over 120 articles to bring you the latest. Estimated reading time saved (at 200wpm): 280 minutes. It'll take you only 8 minutes to catch up.

Wendy's Ambitious Global Expansion Plan

Wendy's is set to open 1,000 new restaurants by 2028, aiming to increase its global presence to between 8,100 and 8,300 locations. The company is targeting $17.5B to $18B in sales and plans to enhance profitability through:

A net unit growth of 3-4%
Investing $115M annually over four years for restaurant development and tech improvements
Introducing new restaurant designs focusing on efficiency, digital services, and smaller real estate options

Wendy's has seen significant sales increases, particularly from collaborative promotions, affirming its sustained growth trajectory.

Sources: QSR Magazine, Restaurant Business, Restaurant Dive

Taco Bell's Bold 2025 Strategy and 2030 Goals

Taco Bell is implementing an ambitious growth strategy:

Projected 8% increase in U.S. same-store sales in Q1 2025
Aim to increase average unit volumes (AUVs) from $2.2 million to $3 million by 2030
International expansion plans to grow from 1,150 to over 3,000 locations in countries like France, Greece, and South Africa
Targeting $5 billion in sales from Cantina Chicken Menu items and beverages by 2030
Committed to 100% digital transactions, focusing on enhancing the Taco Bell Rewards program

David Gibbs, CEO of Yum Brands, highlights Taco Bell as a vital growth engine for the company.

Source: QSR Web

CKE Restaurants Welcomes New CEO Joe Guith

Joe Guith has been appointed as the new CEO of CKE Restaurants Holdings, the parent company of Carl's Jr. and Hardee's. Guith has:

Led Church's Texas Chicken to record profitability and expansion to over 1,500 locations across 23 countries
Held leadership roles at Focus Brands, McAlister's Deli, and Cinnabon

Guith expressed excitement to join CKE, aiming to continue the legacy of exceptional service and drive innovation.

Sources: QSR Web, Nation's Restaurant News, Restaurant Dive

Papa John's Strategic Revamp Amid Sales Decline

Facing a 4% decline in North American sales and overall revenue decrease to $2.06 billion, Papa John's is:

Redefining value with lower price points like the Shaq-a-Roni and XL New York Style pizza
Enhancing digital engagement, with 85% of orders through digital channels
Investing $25 million in marketing and customer loyalty initiatives
Revamping the Papa Dough rewards program, increasing loyalty orders from 21% to 50%
Addressing operational challenges for greater consistency across locations

Despite closing 186 outlets and opening 310, maintaining a total of 6,030 locations, the brand is focusing on innovations and digital campaigns to improve value perception.

Source: QSR Magazine

On The Border Files for Bankruptcy Protection

On the Border Mexican Grill & Cantina has filed for Chapter 11 bankruptcy due to:

Over $25 million in debt and more than 10,000 creditors
Declining revenues, labor shortages, and rising costs
Closing of 40 locations

The chain is undergoing reorganization led by restructuring expert Jonathan Tibus and has initiated a sale process. Despite efforts to modernize and boost sales, the company faced a 3% decline in same-store sales in 2023.

Sources: FSR Magazine, Restaurant Dive, Nation's Restaurant News

Starting March 17, Chick-fil-A introduces:

The return of the Smokehouse BBQ Bacon Sandwich, customizable with original, spicy, or grilled filets, featuring hand-tossed bacon and Colby Jack cheese
New Pineapple Dragonfruit beverages including Frosted Lemonade, Lemonade, Iced Tea, and Sunjoy

These offerings aim to refresh the menu for spring and appeal to customers seeking new flavors.

Source: Nation's Restaurant News

Chipotle Introduces Chipotle Honey Chicken

Chipotle is launching a new menu item inspired by the hot honey trend:

Chipotle Honey Chicken combines chipotle pepper heat with wildflower honey sweetness
Initially available to rewards members, then to all customers in Europe and North America by Friday
The dish has performed exceptionally well in test markets
The 'Most Popular Chipotle Honey Chicken Bowl' includes fan-favorite toppings like white rice, black beans, and fajita veggies

Source: Fast Casual

Shake Shack Faces Class-Action Lawsuit in California

Shake Shack is facing a class-action lawsuit alleging:

Deceptive advertising for hidden delivery fees not disclosed until the final payment screen
Prices being misleadingly altered with additional service and courier fees encountered too late in the ordering process
Violation of California’s price transparency laws, highlighting issues with "drip pricing"

This lawsuit follows similar scrutiny faced by other delivery services, emphasizing the importance of clear fee disclosures.

Sources: Restaurant Business, Nation's Restaurant News

Leadership Highlights: Celebrating Women in Fast Casual

In honor of International Women's Day, the fast casual industry highlights 21 female leaders who:

Exemplify empowerment and inspiration in various culinary roles
Dedicate themselves to uplifting one another while addressing broader issues of female empowerment
Embrace collaboration and pave the way for future generations

Source: Fast Casual

Food Industry Impact of GLP-1 Drugs

GLP-1 drugs, mimicking a hormone indicating fullness, are poised to:

Significantly change food consumption patterns in the U.S.
Lead to a potential 10 trillion calorie reduction annually by 2030
Users opt for higher-quality, fresh foods while reducing processed and fast food consumption
Create new opportunities for food brands to cater to a more mindful, health-conscious consumer base

This shift may reshape how Americans approach food and eating.

Source: Food Industry Executive

Strategies for Handling Negative Reviews

Restaurant owners share advice on dealing with negative reviews, especially from disgruntled ex-employees:

Respond professionally to address false claims
Focus on positive feedback to overshadow negative reviews
Understand that platforms often favor reviewer anonymity, making removal difficult
Consider legal steps like cease and desist orders if necessary

The consensus emphasizes maintaining great service and letting positive customer experiences speak for themselves.

Source: /r/restaurantowners

Advice on Inventory Management Software

Restaurant owners recommend various inventory management tools:

MarginEdge and MarketMan for robust features
Restock as a budget-friendly option
Combining software with custom spreadsheets for cost-saving
Importance of assessing specific needs before choosing a system

Opinions vary, highlighting the need for personal context in decision-making.

Source: /r/restaurantowners

Emerging Trends: Shrinking Pantries in Restaurant Chains

Restaurants are reducing pantry sizes to boost efficiency:

Significant SKU reduction, like Einstein Bros Bagels cutting SKUs by 40%
Simplifying offerings due to labor shortages and rising costs
Key players like Starbucks, Papa Johns, and Chili’s prioritizing menu simplification
Streamlining operations for profitability and faster growth

This trend reflects an industry-wide effort to enhance efficiency.

Source: Nation's Restaurant News

Employee Well-being: Work-Life Balance Shift

Restaurant managers are experiencing:

A shift from demanding management roles to positions with better work-life balance
Frustration with long hours and understaffing
Emphasis on mental health prioritization in a challenging industry
Seeking roles in larger companies with better support systems

This highlights the importance of sustainable work environments.

Source: /r/Restaurant_Managers

Legal and Safety Concerns in Restaurants

Burger King introduces the Fiery Big Fish Sandwich, but customers question the value of the promotion
On The Border faces bankruptcy due to financial struggles
Clover hardware resale value is low due to limited compatibility
Balcony safety measures are crucial to prevent accidents in bars with upper-level seating

These issues underline the importance of operational diligence and customer perception.

Sources: /r/fastfood, /r/restaurant, /r/BarOwners

Kitchen Uniforms and Aesthetics

Restaurant owners discuss premium kitchen uniform options:

Chefworks recommended for stylish and functional attire
Considering uniforms that match the restaurant's aesthetic, especially for open kitchen concepts
Balancing functionality with visual appeal is key

Source: /r/restaurant

Kim Malek: Ice Cream Innovator and Community Connector

Kim Malek, founder of Salt & Straw, built the brand from an ice cream cart to 43 stores:

Collaborates with local artisans; each flavor tells a community story
Focuses on maintaining company culture while scaling
Prioritizes experience over technology in customer interactions
Innovates with a seasonal menu featuring five new flavors monthly
Learned from mentors like Danny Meyer about evolving company culture
Values building community connections as her proudest achievement

Source: Total Food Service

Exploring Honey Varieties and Business Opportunities

Honey comes in various forms:

Monofloral and polyfloral varieties
Specialty types like Manuka honey (health benefits) and elvish honey (fetches $1,500 per pound)
Opportunities in beekeeping and honey business include:
- Wholesale selling for steady sales
- Retail selling for higher profit margins
- Offering diverse products like infused honey, beeswax candles, and sugar alternatives

Scaling a honey business involves knowledge of beekeeping, market regulations, and product diversification.

Source: BlueCart

Modern Innovations: 3D-Printed Restaurant Design

The MYATA Platinum Lounge in Dubai showcases:

The largest 3D-printed restaurant interior, crafted from over 20,000 unique recycled plastic parts
Designed by DA Bureau, creating immersive, canyon-like environments
Emphasizes sustainability and creativity in food service spaces
Balances comfort with captivating visual interest

This project exemplifies innovative design and environmental consciousness.

Source: Modern Restaurant Management

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